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Analyzing the Insider Data for Callon Petroleum Company (CPE)

Recent insider trends for Callon Petroleum Company (NYSE:CPE) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how CPE might perform in the future.

Institutions own 124.61% of Callon Petroleum Company (CPE)’s shares. The total value of these holdings, in millions, is $2,807. Among active positions in the latest quarter, 182 holders increased their positions by a total of 43.14 million shares, 116 holders decreased the positions by a total of 37.33 million shares, and 27 holders held their positions. This works out to a net increase in ownership of 5.81 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 48 holders initiated new positions by a total of 6.86 million shares and 45 holders exited their positions by a total of 15.99 million shares. This nets out to a decrease of 9.13 million shares and is another bearish sign for CPE.

Insider ownership increased by a total of 0 shares, which suggests that CPE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 11 sells, and ownership decreased by a net of 452433 shares.

Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Callon Petroleum Company (NYSE:CPE)’s short interest is 42.01 million shares, or 21.09% of the float. This represents a decrease of -9% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for CPE. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CPE is a Weak sell, which implies that CPE is expected to underperform the market based on prior trading patterns.

Conclusion

Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Callon Petroleum Company (NYSE:CPE) is overvalued.

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